EXHIBIT 99.4
 
                            NIPSCO INDUSTRIES, INC.
 
                       COMPUTATION OF PER SHARE EARNINGS
 
                     TWELVE MONTHS ENDED DECEMBER 31, 1996
=============================================================================== 


                                                                    FULLY
                                                     PRIMARY       DILUTED
                                                    ----------    ----------
                                                            
Weighted Average Number of Shares
  Average Common Shares Outstanding at 12/31/96.... 61,190,750    61,190,750
  Dilutive Effect for Nonqualified Stock Options 
  at 12/31/96......................................    238,218       273,299
                                                    ----------    ----------
  Weighted Average Shares at 12/31/96.............. 61,428,968    61,464,049
                                                    ==========    ==========
Net Income to be Used to Compute
 Earnings Per Average Common Share

                                                      (DOLLARS IN THOUSANDS)
  Net Income.......................................   $176,734      $176,734
  Dividend Requirements on Preferred Shares........        119           119
                                                      --------      --------
  Balance Available for Common Shareholders........   $176,615      $176,615
                                                      ========      ========
Earnings Per Average Common Share..................   $   2.88(a)   $   2.87(a)
                                                      ========      ========

- --------
 
Note:
(a) This calculation is submitted in accordance with Regulation S-K item
    601(b)(11) although not required by footnote 2 to paragraph 14 of APB
    Opinion No. 15 because it results in dilution of less than 3%.
 
 
 
=============================================================================== 
 
                                       1
 


 
EXHIBIT 99.4
 
                            NIPSCO INDUSTRIES, INC.
 
                       COMPUTATION OF PER SHARE EARNINGS
 
                     TWELVE MONTHS ENDED DECEMBER 31, 1995
================================================================================


                                                                    FULLY
                                                     PRIMARY       DILUTED
                                                    ----------    ----------
                                                            
Weighted Average Number of Shares
  Average Common Shares Outstanding at 12/31/95.... 63,281,177    63,281,177
  Dilutive Effect for Nonqualified Stock Options 
  at 12/31/95......................................    217,756       389,346
                                                    ----------    ----------
  Weighted Average Shares at 12/31/95.............. 63,498,933    63,670,523
                                                    ==========    ==========
Net Income to be Used to Compute
 Earnings Per Average Common Share

                                                     (DOLLARS IN THOUSANDS)   
                                                    
  Net Income....................................... $  175,465    $  175,465
  Dividend Requirements on Preferred Shares........      3,063         3,063
                                                    ----------    ----------
  Balance Available for Common Shareholders........ $  172,402    $  172,402
                                                    ==========    ==========
Earnings Per Average Common Share.................. $     2.72(a) $     2.71(a)
                                                    ==========    ==========

- --------
 
Note:
(a) This calculation is submitted in accordance with Regulation S-K item
    601(b)(11) although not required by footnote 2 to paragraph 14 of APB
    Opinion No. 15 because it results in dilution of less than 3%.
 
 
 
 
=============================================================================== 

 
                                       2


 
EXHIBIT 99.4
 
                            NIPSCO INDUSTRIES, INC.
 
                       COMPUTATION OF PER SHARE EARNINGS
 
                     TWELVE MONTHS ENDED DECEMBER 31, 1994
================================================================================
 


                                                                    FULLY
                                                     PRIMARY       DILUTED
                                                    ----------    ----------
                                                            
Weighted Average Number of Shares
  Average Common Shares Outstanding at 12/31/94.... 64,820,039    64,820,039
  Dilutive Effect for Nonqualified Stock Options at
   12/31/94........................................    134,775       136,688
                                                    ----------    ----------
  Weighted Average Shares at 12/31/94.............. 64,954,814    64,956,727
                                                    ==========    ==========
Net Income to be Used to Compute
 Earnings Per Average Common Share

                                                     (DOLLARS IN THOUSANDS)
  Net Income....................................... $  163,987    $  163,987
  Dividend Requirements on Preferred Shares........      3,063         3,063
                                                    ----------    ----------
  Balance Available for Common Shareholders........ $  160,924    $  160,924
                                                    ==========    ==========
Earnings Per Average Common Share.................. $     2.48(a) $     2.48(a)
                                                    ==========    ==========

- --------
 
Note:
(a) This calculation is submitted in accordance with Regulation S-K item
    601(b)(11) although not required by footnote 2 to paragraph 14 of APB
    Opinion No. 15 because it results in dilution of less than 3%.
 
 
=============================================================================== 
 
 
                                       3